Chapter 1
Marketing – managing profitable customer relationships
* Identify profitable customers
* Attracting new customers
* Retaining and growing current customers
NOTE: Marketers must understand customer needs
Steps of Marketing Process
1. Understanding Customer Needs
* Needs: states of felt deprivation i.e. physical, social, knowledge
* Wants: a form of needs shaped by cultural and individual personalities. i.e. Canadian needs food but wants a hash-brown from MD’s (usually the objects of needs)
* Demands: when backed by purchasing power, wants will turn into demands
* Market Offerings: combination of products, services, information, or experiences offered to satisfy a need or want
* Marketing Myopia: the mistake of focusing too much on the product rather than the benefits that it provides i.e. postal service focus on creating better mail services rather than expanding and improving the communication service (causes problems when alternatives are developed and their product becomes obsolete. Should focus on needs instead of wants)
* Marketers must set the right expectations for customer – too high and customers will be dissatisfied, too low and they won’t attract enough customers
* Exchange – act of obtaining something by offering something in return
* Markets – a set of all potential buyers of a product/service
* Customer relationship management – how we can reach out to customers
* Customer managed relationship – how customers can reach out to us or other customers
2. Customer Driven Market Strategy – outlines which customer and how it will serve them
* Marketing Management - art and science of choosing target market and building relationship with them
* Selecting Customers to serve – divide the market into segments and selecting which segments to target
* Choosing a value proposition – how it will differentiate itself from the marketplace...